The start-up NaturLoop brings a biocomposite made of coconut husk to the market. At today’s session Daniel Dinizo, co-founder of the start-up NaturLoop, has been coached by Pol Budmiger, start-up coach of our partner Innosuisse. Daniel and Pol discuss topics such as role clarification, market analysis and the customer perspective when it comes to marketing & sales.
The start-up NaturLoop transforms agricultural waste into biocomposites. Their first product Cocoboard is an all-natural panel made of coconut husk and natural tannin adhesive developed for use as a sustainable alternative to particleboard or Medium Density Fiberboard (MDF). These Cocoboards can be used in mass production of furniture. Five youngpreneurs are behind the start-up NaturLoop. Their start-up is headquartered in Switzerland, but they produce in the Philippines, where the coconut raw material is harvested and processed.
Pol inquires whether the clarification of roles between the Philippine partner and the founders in Switzerland is clear. «Our Philippine partner is responsible for managing the supply chain: From Obtaining the coconut husk to delivering it to the factory», replies Daniel. However, the set-up of the partnership has not yet been fixed in all details. Daniel should bring in more people to obtain a complementary resource base, advises Pol.
«Remember, as CEO, you are involved in the whole process and responsible for everything.»
«It helps to have an additional experienced person to play the role of the ‘advocatus diaboli’ to find the weak spots. Try to get a sounding board, some more people behind you, that will support you.» Next, Pol addresses market development. «Start-ups often wait way too long with the market analysis. They think they have to focus on their product first», shares Pol Budmiger from his coaching experience. He, therefore, recommends:
«Identify the market demand and develop the business model in parallel.»
«Do this in a ‘quick and dirty manner’ and conduct several interviews per stakeholder group to get an overview of the market needs.» Daniel Dinizo has already gained experiences with the Asian as well as the European market recognizing that needs differ and markets have to be approached specifically. Cocoboard is 100% organic and plant based. This, for example, is one of the most important arguments for the European market, because MDF usually consists non-organic adhesives. The European market is highly interested in this organic raw material. Though, the potential of this natural product is undoubtedly considerable, the customer needs have to be validated.
NaturLoop has already been interviewing big furniture retailers like IKEA or Vitra.
They are indeed very interested in their coconut product. Daniel Dinizo and his business partner Michail Kyriazopoulos had talks with wholesalers from the Philippines, who said that, if the material quality met industry standards and pricing is in line with the conventional competition, they would buy it. However, there are still concerns about the environmental impact, bringing the material from the Philippines to Europe. This is one reason why Pol recommends a focused approach: «Start in the Philippines first and then expand to other countries and export products to Europe.» Lastly, the two talk about marketing and sales. «Do not get lost in technical details.
«Always keep in mind that you are selling to people, not institutions.»
People want to experience personal added value, they don’t want to hear fancy technical features. If you are solving a relevant problem of your customer segment, they will buy. So, making a clear promise and telling a positive story is key. One principle here is: You can be better, faster or cheaper. But putting your unique selling proposition on pricing is not recommended for most start-ups», explains Pol. Daniel thanks Pol for the valuable advices and closes the coaching session enthusiastically: «There is still a lot to do. Let’s get it started!»
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